Wednesday, February 28, 2007
Tuesday, February 20, 2007
House buying seasons
It has been a while since my last post and I think it illustrates something about the cycle of when real estate is busiest and less busy. Traditionally many people have thought that the ideal time to list a house for sale is in the spring, figuring that most buyers will buy then so they can move in the summer before school starts.
Well, in recent years, that doesn't really represent what is happening in real estate cycles. I have seen January be an EXTREMELY busy month, often due to the fact that our slowest time tends to be from about mid-November until January 2nd. That end-of-the-year period seems to be one that is so busy for people with other holiday activities - plus the weather is not particularly inviting then (to say the least) - so many buyers put their house hunt on hold and many sellers prefer to not have to worry about showings until January. It is probably the least preferred time to move as well for the same busy activity/crummy weather reasons.
With that lull in November and December though, there is always some pent up demand come January, when buyers are ready to get back to some serious house hunting.
So sellers who think they must hold off until mid to late spring to put their home on the market may be missing that window of high buyer demand and less competition from other listed homes. Of course, sometimes there are some legitimate reasons why a seller should wait - if they really need to paint the exterior, replace the roof or redo the front landscaping, they may be wise to wait until they can accomplish those items since first impressions are so important. If the home will lack in street appeal in January, then March or April will be a better choice to begin the marketing.
The other curious timing thing I have observed is that often August is an extremely slow month! This again seems counterintuitive since weather is great, there is still time to get moved before school etc etc. My explanation is that many people are too busy enjoying a last fling of vacations and outdoor activities before school, not to mention all the school clothes and school supplies shopping that occurs. So August can be a lazy month sometimes, followed typically by a big resurgence of activity shortly after Labor Day and schools beginning. Parents of school age kids can now refocus on house hunting (& can do the house hunting without the distraction of bored children who don't really think this is the most fun ever!)
So particularly for all you near-future sellers out there - don't be fooled into thinking that the best or only window to sell a home is spring or summer - it is happening now!!
Well, in recent years, that doesn't really represent what is happening in real estate cycles. I have seen January be an EXTREMELY busy month, often due to the fact that our slowest time tends to be from about mid-November until January 2nd. That end-of-the-year period seems to be one that is so busy for people with other holiday activities - plus the weather is not particularly inviting then (to say the least) - so many buyers put their house hunt on hold and many sellers prefer to not have to worry about showings until January. It is probably the least preferred time to move as well for the same busy activity/crummy weather reasons.
With that lull in November and December though, there is always some pent up demand come January, when buyers are ready to get back to some serious house hunting.
So sellers who think they must hold off until mid to late spring to put their home on the market may be missing that window of high buyer demand and less competition from other listed homes. Of course, sometimes there are some legitimate reasons why a seller should wait - if they really need to paint the exterior, replace the roof or redo the front landscaping, they may be wise to wait until they can accomplish those items since first impressions are so important. If the home will lack in street appeal in January, then March or April will be a better choice to begin the marketing.
The other curious timing thing I have observed is that often August is an extremely slow month! This again seems counterintuitive since weather is great, there is still time to get moved before school etc etc. My explanation is that many people are too busy enjoying a last fling of vacations and outdoor activities before school, not to mention all the school clothes and school supplies shopping that occurs. So August can be a lazy month sometimes, followed typically by a big resurgence of activity shortly after Labor Day and schools beginning. Parents of school age kids can now refocus on house hunting (& can do the house hunting without the distraction of bored children who don't really think this is the most fun ever!)
So particularly for all you near-future sellers out there - don't be fooled into thinking that the best or only window to sell a home is spring or summer - it is happening now!!
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